Competition Brings Big Changes to South Africa's Telecom Sector, Pyramid Research Finds


CAMBRIDGE, Massachusetts, April 9 /PRNewswire/ --

South Africa's telecom market is in the midst of a dramatic change, as
incumbent fixed-network operator Telkom SA faces increasing competition not
only from mobile voice and data services but also from competitive fiber
network buildouts, according to a new report from Pyramid Research
(www.pyr.com), the telecom research arm of the Light Reading Communications
Network (www.lightreading.com).

Communications Markets in South Africa offers a precise, incisive profile
of the country's converged telecommunications, media, and technology sectors
based on proprietary data from our research in the South African market. The
30-page report provides detailed competitive analysis of both the fixed and
mobile sectors, tracks the market shares of technologies and services, and
monitors the introduction and spread of new technologies such as WiMax, IPTV,
and VoIP. This executive study provides a comprehensive view of the South
African communications market by analyzing key trends, evaluating near-term
opportunities and assessing upcoming risks factors. Download an excerpt of
this new report here:
http://www.pyr.com/downloads.htm?id=18&sc=PR040909_CIRSAF

South Africa is the largest telecom market in the Africa & Middle East
region in terms of revenue and is one of the most advanced in Africa in terms
of penetration rates, notes Yejide Onabule, Analyst at Pyramid Research and
author of the report. "The high penetration rates, however, make it one of
the slowest growing markets in the region, driving operators to seek new ways
to distinguish themselves and develop new revenue streams," she says.

Telkom SA, the incumbent fixed-network operator, is feeling the pressure.
"Fixed voice revenue has been declining in the past few years and this trend
is expected to continue; revenue is expected to fall from US$2.7 billion in
2008 to US$2.1 billion in 2014, mostly due to the falling cost of mobile
telephony," says Onabule. "Telkom's revenue will decline by 20 percent in the
next five years due to a continuation of fixed voice revenue's downward trend
and competing operators' plans to build out fiber networks that will cut into
Telkom's business service revenues," Onabule adds.

The need for high-capacity networks has triggered a wave of WiMax and
other fixed-wireless access (FWA) capex, allowing operators to bypass
Telkom's former monopoly of the last mile. "Operators that previously relied
on Telkom's network such as MTN and Vodacom are now building their own
national fiber-optic networks, contributing to Telkom's revenue decline over
the forecast period," explains Onabule. "Telkom also lost its monopoly in
fixed communications when the newly established second national operator
Neotel was licensed in 2005," she adds. Neotel, has finally launched services
over fixed-wireless CDMA and WiMax networks, while smaller ISPs, such as
MWeb, have made some inroads in the high-growth DSL market.

Communications Markets in South Africa is part of Pyramid Research's
Africa and the Middle East Country Intelligence Report Series. Pyramid
Research's premium Country Intelligence Reports are the industry's best
available analysis on market trends, regulatory environments, and competitive
dynamics for 60 countries worldwide.

Download an excerpt of this new report here:
http://www.pyr.com/downloads.htm?id=18&sc=PR040909_CIRSAF

Communications Markets in South Africa is priced at US$990 and can be
purchased online here:
http://www.pyramidresearch.com/store/CIRSOUTHAFRICA.htm?sc=PR040909_CIRSAF or
through Dave Williams via email at dave.williams@pyr.com or telephone at 
+1-858-485-8870.

About Pyramid Research

Pyramid Research (www.pyr.com) offers practical solutions to the complex
demands our clients face in the telecommunications, media, and technology
industries. Our analysis is uniquely positioned at the intersection of
emerging markets, emerging technologies and emerging business models, powered
by the bottom-up methodology of our market forecasts for over 100 countries -
a distinction that has remained unmatched for nearly 25 years. As the telecom
research arm of the Light Reading Communications Network, Pyramid Research
works with Heavy Reading, providing the communications industry's most
comprehensive market data, trusted research, and insightful technology
analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading
online media, research, and focused event company serving the US$3 trillion
worldwide communications market. Lightreading.com is the ultimate source for
technology and financial analysis of the communications industry, leading the
media sector in terms of traffic, content, and reputation. Light Reading's
research arms, Heavy Reading and Pyramid Research, provide the most
comprehensive communications research, market data, and technology analysis
in close to 100 markets around the world. Light Reading produces nearly 20
targeted communications events including TelcoTV, Ethernet Expo New York and
Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as
focused one-day events tailored for cable, mobile, and wireline executives.
Light Reading was acquired by United Business Media in August 2005 and
operates as a unit of TechWeb.

About TechWeb

TechWeb (http://techweb.com/aboutus), the global leader in business
technology media, is an innovative business focused on serving the needs of
technology decision-makers and marketers worldwide. TechWeb produces the most
respected and consumed media brands in the business technology market. Today,
more than 13.3 million* business technology professionals actively engage in
our communities created around our global face-to-face events, Interop, Web
2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network,
Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and
The Financial Technology Network; and the market leading, award-winning
InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street &
Technology magazines. TechWeb also provides end-to-end services including
next-generation performance marketing, integrated media, research, and
analyst services. TechWeb is a division of United Business Media, a global
provider of news distribution and specialist information services with a
market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly
connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information
distribution, targeting and monitoring; and, the development and monetization
of B2B communities and markets. UBM's businesses inform markets and serve
professional commercial communities - from doctors to game developers, from
journalists to jewelry traders, from farmers to pharmacists - with integrated
events, online, print and business information products. Our 6,500 staff in
more than 30 countries are organized into specialist teams that serve these
communities, bringing buyers and sellers together, helping them to do
business and their markets to work effectively and efficiently. For more
information, go to http://www.unitedbusinessmedia.com.

Press contact:
    Jennifer Baker
    +1-617-871-1910
    jbaker@pyr.com



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